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Page 18 question no.57 throughput accounting.Sir why total cost is taken as 30-10.why not 7 +7 =14.please explain .Thanks
I have not yet received the new edition of the Revision Kit from BPP and only have the edition up to June 2020.
The same question is probably in my copy but the number of the question will be different. Please type out the first line of the question and then hopefully I will be able to find it 🙂
I have found the question 🙂
The question does not ask for the cost, it asks for the return per factory hour. The return per factory hour is the selling price less the materials cost (divided by the machine hours).
Have you watched my free lectures on throughput accounting? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
Yes sir ,I have watched all your lectures.I wanted to know that in your lectures you have also said that for calculating return per factory hour we take all all costs except material cost divided by machine hours
Why are we not following that concept ? Please clear my confusion.Thanks.No – I do not say that is the return per factory hour. What you describe is the cost per factory hour (and then to get the throughput accounting ratio we divide the return per factory hour by the cost per factory hour).
Got it sir ,my fault.I was mixing both .Thanks and sorry to bother you unnecessarily.??
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